(Alliance News) - Pest control business Rentokil Initial PLC on Thursday said it recorded its highest level of quarterly organic growth in over a decade, with the company on track to meet expectations for 2019.
The company's revenue from continuing operations, or ongoing revenue, for the three months to September 30 increased 14% year-on-year to GBP723.0 million, with organic revenue rising 5.5% versus 4.1% a year ago. Acquisitions in the quarter contributed 4.3% to ongoing revenue.
Reported revenue for the third quarter grew 13% year-on-year to GBP727.2 million.
Rentokil's core Pest Control business recorded 12% growth in quarterly ongoing revenue, with 5.9% organic growth, driven by good performances in both growth and emerging markets.
"Our North American, UK & Rest of World and Latin American operations delivered particularly good growth in the period," Rentokil said.
The company's Hygiene business also performed well during the quarter, with ongoing revenue rising by 5.5%, and organic revenue increasing 4.8%.
"This reflects good growth in the UK, Europe and Pacific and the ongoing contribution from acquisitions," the company said.
Third-quarter ongoing revenue from Rentokil's Protect & Enhance business grew 4.9%, with 4.5% organic growth.
The FTSE 100-listed company bought 15 businesses in the third quarter, with annualised revenue of around GBP15 million. Year-to-date the company has acquired 32 businesses in total.
Rentokil is continuing with the integration of Cannon UK and MPCL, formerly Mitie Pest, following completion of a review by the UK Competition & Markets Authority, which required partial divestments of the businesses.
"I am pleased with our third-quarter results and our group organic growth of 5.5% is our highest level of quarterly organic growth in over a decade. Pest Control has performed well, growing organically by 5.9%, and Hygiene has demonstrated further momentum, growing organically by 4.8%. Our performance in third quarter, combined with further progress in our value-creating mergers and acquisitions programme, means we remain on track to meet expectations for the full year," Chief Executive Andy Ransom said.
Rentokil shares were up 2.4% at 452.90 pence each in London on Thursday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Rentokil Initial (RTO)